Enbridge's Q3 2024: Strong Results, Strategic Acquisitions, and Bright Outlook
AInvestFriday, Nov 1, 2024 8:27 am ET
1min read
ENB --
Enbridge Inc. (TSX: ENB) (NYSE: ENB) reported robust third quarter 2024 financial results, demonstrating its commitment to executing business priorities and reaffirming its financial guidance and outlook. The company's strategic acquisitions, new project sanctionings, and strong asset utilization contributed to a solid quarter, positioning Enbridge for future growth.

Enbridge's third quarter GAAP earnings reached $1.3 billion or $0.59 per common share, marking an 8% increase from the same period in 2023. Adjusted earnings before interest, income taxes, depreciation, and amortization (EBITDA) rose 8% to $4.2 billion, while cash provided by operating activities remained strong at $3.0 billion. The company's distributable cash flow (DCF) of $2.6 billion was in line with 2023 levels.


Enbridge's strategic acquisitions played a significant role in driving its financial performance. The company closed the acquisition of Public Service Company of North Carolina (PSNC) from Dominion Energy, Inc., expanding its U.S. natural gas utility customer base to over 7 million. Additionally, Enbridge acquired additional docks and land adjacent to the Enbridge Ingleside Energy Center (EIEC), enhancing its crude oil export capabilities.


The company also sanctioned several new projects, including the Canyon System Pipelines, a $0.7 billion project to deliver crude oil and natural gas from BP Exploration & Production Company's (bp) Kaskida development in the Gulf of Mexico. Enbridge acquired a 15% interest in the Delaware Basin Residue (DBR) pipeline system in West Texas, extending its Permian strategy and customer service offering. Furthermore, the company sanctioned the 815 MW Sequoia Solar project in Texas, a $1.1 billion development substantially underpinned by long-term power purchase agreements with AT&T and Toyota.

Enbridge's low-risk business model and diversified portfolio contributed to its strong financial performance. The company's four core franchises – Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, and Renewable Power – delivered high-quality cash flow and predictable growth, underpinning its sustainable return of capital to shareholders.

Greg Ebel, President and CEO of Enbridge, commented on the company's performance: "Across the business, we saw strong utilization of our assets which drove another solid quarter of financial results, positioning us to achieve full-year guidance for the 19th year in a row. We expect to be near the top of our 2024 EBITDA range, and close to the mid-point of our original DCF per share guidance range."

Enbridge's strategic acquisitions, new project sanctionings, and strong financial performance demonstrate the company's commitment to executing its business priorities and capitalizing on future growth opportunities. With a diversified portfolio and a low-risk business model, Enbridge is well-positioned to continue delivering value to shareholders and customers alike.
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